According to the extensive analysis of the Spanish Wine Market Observatory (OEMV), based on statistical data from Customs and the Tax Agency (AEAT), the inflationary factor was decisive to record in value the best first semester in historical terms of wine exports, as well as the best month of June, thanks to the increase in average sales prices.
On the positive side, that also occurred generally among the main producing countries of our environment.
However, on the less favorable side was a cut in export volume, with decreases in shipments in major destinations, Perhaps also due to the higher cost of our sales and a containment of demand in the face of the energy crisis unleashed by the war in Ukraine, which has triggered costs and continues to negatively affect most of the world’s economies.
In all wine products, the value of exports last June was 318.06 M€, 7.5% and 22.2 million more than in the same month of 2021, with a volume of 258.22 million liters (-10.4% and 30.1 million less than in that month last year), although with an average export price of 1.23 €/liter, which is 20% and 20 ct/liter higher than that of that month.
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In value, during the first half of the year, wine products were invoiced abroad for €1,649.65 million, 4.8% and 74.81 million more, although with a fall in volume of 11.3% and 172.2 million litres, to 1,250.86 million (12.5 Mhl). This higher value, despite the appreciable decrease in foreign sales, was largely pale with an increase in the invoiced price of 18.1% and 19 cents per litre, up to 1.22 €/litre on average.
In the year-on-year period (July 2021-June 2022), sales of wine products abroad improved by 5.8% and by 185.3 million euros, to reach 3,364.32 million, but with a volume that already decreased a slight 1,6% and 47.5 million litres, to a total of 2,918.3 million litres (almost 29.2 Mhl), thanks to an average price of 7.6% and 8 cents, up to 1.15 €/litre.
In the first half of the year, the export of wines by volume, as noted by the OEMV, decreased by 10.9% and by 125.51 Mltr to remain at 1,350.86 million (13.5 Mhl), with an invoice amounting to 1,435.26 M€, which is 14% and 56.44 million higher than in the same period of 2021, with an average price improves by almost 17% and by 20 cents, until remaining at 1.40 €/liter, but with important differences, as usual, between bulk and packaged and with denomination of quality or not.
In June alone, the external bill for wines rose to almost 275 million euros, marking the largest historical record in that month to date and 7.3% and 18.7 million more than in June last year, which had already marked a record with almost 256 million.
In the year-on-year tranche (July 2021 to June 2022 compared to a year earlier), wine exports fell by 1.7% in volume, with 2,928.3 Mltr (29.28 Mhl), with a decrease of 47.5 million, while in value they increased by 5% and by 138,7 million, to add just over 2,935.75 million euros, thanks to an average price that improves 6.7% and 8 ct/€ to stay at 1.35 €/liter.
By types of wines, only sparkling wine (+10% in value and 6.6% in volume) and semi-sparkling wine (+25% in value and +3% in volume) improve sales in both areas. Meanwhile, in value it is the bulk wines (+14% and 33 million more) and the sparkling wines (+20.3 M€) that lead the climbs and in volume are the bulk wines (-11% and 71.4 Mltr less) and the packaged still wines (-54.6 M€) that descend the most.
More in detail and by product categories, the packaged still wines (in containers of less than 2 litres) exported in the first half of 2022 14.8% and almost 54.6 million litres less in volume than in the same tranche of the previous year, up to 314.56 Mltr, with a invoiced value that barely rises by 0.7% and by 6.4 M€, up to 869.84 million, with an average unit price that also increases by 18.2% and by 0.43 ct/€, up to 2.77 €/liter.
In wines with D.O.P. packaged were sold outside between January and June 138.92 million litres, 15% and 24.54 million less, invoicing in the amount of 647.58 M€, 1% and 6.4 million more, at an average unit price of 4.66 €/litre, which compensates the decrease in volume, by increasing by 20.7% and by €0.17/litre compared to the average for the first half of a year earlier.
In wines with I.G.P. packaged, the volume exported was also reduced by 17.2% and by 12.28 million litres, to 58.91 million, with an invoice in this first half of the year of about 71.7 M€, 5.6% and almost 3.8 million more, due to the average price that is appreciated by 27.6% and in 27 ct/l, up to 1.22 €/liter for the same period of 2021.
In wines with variety without D.O.P./I.G.P., the volume exported between January and June decreased by 0.3% and by 130,000 litres, to 37.58 million, while in value it adds 62.56 M€, with an external invoice that rises by 3.6% and by about 2.19 million, with an average unit price that improved by 4% and six euro cents to stay at 1.66 €/liter.
Finally, «unnamed» wines without D.O.P./I.G.P. due to an average price increase of 14.5% and 14 ct/€, up to 1.11 €/litre.
By volume, there is a fall in sales in new of the eleven main destinations (all except France, with an increase of 1.5%, and Mexico, with 49% more). The three main destinations recorded cuts in their double-digit purchases, with Germany (-21%), Portugal (-24%) and the United Kingdom (-15%), highlighting also the losses that were recorded in China (-38%); Canada (-12%) and Italy (-13.6%).
In value, the United States consolidated as the first destination in euros, with an increase of 9.4% in this period, to 132.3 M€, followed by the United Kingdom which, on the contrary, dropped 11.9% (111.3 M€); Germany (-11.6% and 91.1 M€) and Switzerland (+15.3% and 65.4 million. In addition, while China invoiced 31.7% less (€34.2 million), Mexico increased its amount by 55.5% (€35.2 million), with more moderate increases in France (+18% and €31.2 million) and Japan (+17.2% and €27.2 million).
Exports of still wines in bulk (>10 litres) in this first half of the year in relation to the same period of 2021 decreased by 10.9% in volume and by 71.41 million litres, to 582.66 million, while in value there was an appreciable improvement, with a turnover of 14% and almost 33 million more, up to almost 269 million euros.
In volume, sales of this type of wine abroad decreased by 9.9% and by almost 30.1 million litres, to 281.97 (almost 2.82 Mhl), with a bill that, on the contrary, rose by 9.8% and 11.26 million more, exceeding 126 M€, thanks to the significant improvement of 27,9% and 10 euro cents of its price, which reached an average of 0.46 €/litre
By product categories, wines with D.O.P. in bulk cut a considerable 32.1% and 1.41 million litres of foreign sales in volume, up to 2.99 million, and also saw their value decrease by 24.9% and by almost 1.23 M€, up to 3.69 M€, despite the improvement by 10.5% and 11 cents of its average unit price, which remained at 1.23 €/liter.
Wines with I.G.P. in bulk also recorded a decrease in volume sales abroad of 24.9% and more than 3.57 Mltr between January and June, falling to 10.76 million, with a bill that was reduced by 10.8% and by about 870,000 euros, until remaining at 7.16 million, thanks to an average price of 18.8% and 11 ct/€ higher, up to 0.67 €/liter.
For its part, varietal wines without D.O.P./I.G.P. in bulk recorded an increase of 3.1% of the volume exported, with 5.08 Mltr more, to 166.34 Mltr, with a value that recovered 24.9% and 15.4 million, up to 180.97 M € in relation to then, due to an average price that rebounded 21.1% and 8 cents, to 0.46 €/liter.
Finally, wines without D.O.P./I.G.P., or bulk variety registered a decrease in their exports in volume of 15.1% and 71.5 million in this half-year period, to almost 402.57 million litres, but, on the other hand, invoiced 12.2% and almost 19.7 million more, up to 180.97 million euros, thanks to its average sales price increased by 32.1% and by 11 ct/€ per liter, up to 0.45 €/liter.
Italy, Portugal, Germany and France were the destinations that fell the most in volume, stopping buying altogether 49.2 Mltr in this first half of 2022, although France (+17.4 M€) and Germany (+8.3%) were also the ones that increased their spending on this type of wine, while Portugal increased by 2.7 million, and Italy was the only one to reduce the value of its purchases by 2.3 million.
Bag in box:
Within the packaged still wines, the category between 2 and 10 liters (bag in box), was also affected by the decline by 6% and by almost 1.7 million liters, up to about 28 million, not being compensated in value, which was reduced by 1.4% and around half a million euros, to 34.15 million, due to its average price rising just 6 cents, by 5% and up to 1.31 € per liter.
By subcategories, the wine with D.O.P. exported in BiB decreased in this period by 17.6% and around 800,000 liters in volume, to 3.78 mltr, while in value it was also reduced by 8.7% and 780,000 euros, up to 8.16 million euros, despite an improvement of 10,8% and 21 cents of its average price compared to the same period of the previous year, up to 2.16 €/liter.
On the contrary, wine with I.G.P. in containers of between 2 and 10 liters improved by 5.4% its sales in volume, with 193,510 liters more, up to almost 3.76 million, but still with a slight decrease in its value of 0.6% and 37,140 euros, until remaining at 5.14092 M€, after cutting its average price by 5.7% and by 9 ct/€, up to 1.58 €/liter.
The wine with variety in BiB experienced, meanwhile, a slight increase in the volume sent abroad of 0.8%, up to about 6.4 Mltr, with a value that recovered 5.8% and about 430,000 euros, to remain at 7.83 M€, with an average price that improved by 4.9% and 6 ct/€ to stay at 1,23 €/liter.
Finally, the wine without indication in bag-in-box reduced its sales by 8.4% and by almost 1.1 million, to 12.05 mltr, with a slight decrease in its bill of 0.7% and of just over a million euros, to 12.23 million, at an average price that exceeded the euro per litre (1.02 €), after increasing by 8.4% and by 8 cents.
By destination, Sweden remains the first customer for Spanish wines in BiB in this first semester, with an invoice of 4.9 M€ and fall of 5% in volume, while Japan rises to the second position, for its increase of 61% in value, up to 4.1 M€, followed by Germany (€3.3 million and +42%); Denmark (€2.7 million and +7.8%) and Norway (€2.6 million and -29%).
In volume, Japan surpassed France, Sweden and the United Kingdom, placing itself as the first customer for the Spanish BiB, with an increase of 55%, up to 4 Mltr. France loses 48% in volume, Sweden 2% and the United Kingdom 25%.
Germany bought 3.3 Mltr (+44.5%), followed by Sweden (3 Mltr) and the Observatory highlights the increase in sales to Poland (+410% in value, up to 1.1 M€ and +526% in volume, up to 1.2 Mltr).
Sparkling wines, spirits and needle wines
During the first half of the year, sales of sparkling wines continued to improve, growing by 5.6% in volume, to 76.8 Mltr, as well as 10% in value, to 223.5 M€, with an average sales price of 4.1% higher, to 2.591 €/litre.
Within this category, Cava, which accounted for more than 80% of the total volume exported of sparkling wines, recorded an increase of 7% and 4.1 million litres, to 177.9 Mltr, against a fall of 0.3% and 37,630 litres less than the rest of sparkling wines, with 14.9 million liters.
In value, something similar happened, with an increase of 12% and 18.6 M€ of the external invoice of the Cava, up to almost 178 M€, with an average price of 2.87 €/liter (+4.2%), while the rest of sparkling wines increased their value by 4.3% and by 1.8 million, up to 45.6 M€, with an average price of 3.06 €/litre.
By destination markets, the United States remained the first destination for Spanish sparkling wine in value, billing 33.9 M€ in this first semester, although with a decrease of 2.3% in volume, followed by Belgium, with 28.8 M€ (+25%) which relegates Germany to third place, with 24,2 M€ (+10%).
In volume, Germany continues to lead the destination, with 10.7 Mltr (+0.8%), closely followed by Belgium, with 10.4 million (+16%), which surpassed the United States, with 10.3 Mltr (-15%).
The OEMV highlights the «extraordinary» growth in sales of sparkling wines to Sweden (+32.5% in value, with 19.3 M€, and +48% in volume, with 6.1 Mltr), which ranks fifth as the destination of this category of wines, as well as Japan (+19.5% in value and +16% in volume and fourth market), Mexico (+65.5% in volume, with 2 Mltr, and +130% in value, with 4.6 M€), Switzerland, Dominican Republic or Poland.
In liqueur wines (Jerez et al.), exports fell considerably in comparison with the first half of 2021. The export volume decreased by 27.3% and 2.42 Mltr to almost 6.51 million. The same in value, with an invoice 19.1% and 5.68 million euros lower, up to 24.07 million, despite the increase of 11.3% and 38 cents of its average price, which rose to 3.70 €/liter.
The volatile semi-sparkling wines had to improve their sales both in volume (+5.6% and 4.09 million more, up to almost 15.24 Mltr), and in value, with a considerable increase in their bill (+24.7% and almost 2.92 million more, up to almost 14.72 M€), thanks to a significant increase in the average price of 20.7% and 17 cents, to an average of 0.97 €/litre.
Other wine products
In this category, exports of aromatized wines reduced their volume of foreign sales by 3.6% to 33.92 Mltr, but improved their value by 4.2%, to about 42.1 M€, with an average price that rebounded by 8.1% and by 9 cents, to 1.24 €/litre.
In the first six months of 2022, grape must showed a mixed performance in its exports, reducing its volume of exports by 15.2%, to 260.58 million, but with a value of 9.8% and almost 13.1 million, until it invoiced for 146,38 M€, thanks to a considerable increase in the average selling price of 29.5% and 13 euro cents, up to 0.56 €/kilo.
Finally, vinegars improved by 3.5% their export volume compared to the first half of 2021, to 34.61 million litres and, in addition, improved their bill by 16%, to more than 25.9 M€, thanks to a considerable improvement of 12.1% and 8 ct/€ of its average price which remained at 0.75 €/litre.
The annual comparison of wine exports already shows a growth of 4.1% of the value exported, enough to achieve a historical record in this first semester, with 1,435 million euros, exceeding the figure of 2018, with 1,419 million. This increase simply reflects part of the inflationary effect of the economy, given the almost exponential increase in most energy costs, which have already been shifted to production and processing costs. Therefore, this is an increase that is quite doubtful that it serves to improve profitability in this sector, but perhaps avoid only entering into greater losses.
While the value rises, the volume traded abroad reflects in this first semester a worrying fall of almost 11% and 125 million liters (1.25 Mhl), probably due to the rise in prices, partly because of the general economic crisis that could be affecting and producing a contraction in demand for wine.
In addition, it should be noted that in relative terms, the percentage increase in value is lower than the percentage decrease in volume, which indicates that the increase in average prices is not working -or not at all- to compensate in value for the lower volume marketed abroad. However, everything then depends on each category or subcategory of wine and the destinations to which it is being sent, whether in bulk or packaged.